JBIC invests $10.5m in India-based Takshasila Hospitals

According to a release, JBIC made the investment via a subscription to compulsorily convertible preference shares issued by Takshasila Hospitals - a joint venture between Japanese hospital chain operator Secom, Toyota Tsusho Corporation and Kirloskar Group.

Sakra World Hospital was set up in 2012 with an investment of about INR2.35 billion. This hospital currently has 300 beds but plans to increase this to 20,000 beds nationwide at it looks to expand its network.

India's healthcare companies - and its hospital chains in particular - are a well-established target for private equity investors. According to AVCJ Research, 2013 was a record year for investments in the medical sector with more than $1.37 billion committed across 59 deals.

A total of $300 million has been invested across 19 deals so far in 2014, less than $509 million across 31 deals in the first half of last year.

Recent transactions include ICICI Venture's INR22 billion acquisition of a significant minority stake in Hyderabad-headquartered Krishna Institute of Medical Sciences. Aster DM Healthcare also raised $65 million from existing investors Olympus Capital and India Value Fund earlier this year. 

The deal follows JBIC's previously stated aim of engaging in more private equity investment as a means of supporting to Japanese corporate activities overseas.

"We want expand to our private equity investment program and this will be a priority as we look to engage in more equity activities either through direct investment or through investment in funds," said Shigeki Kimura, managing executive officer with JBIC, said in an interview with AVCJ last month.

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• Topics
• North Asia
• Healthcare
• South Asia
• Expansion
• Japan
• healthcare
• India
• JBIC
• Growth capital